New build -
Line them up: the rise of terraced housing
Artist's impression of Gibbons Co.'s Five Mile Villas in Queenstown
After decades of standalone housing dominating the supply pipeline, terraced housing is now the most common kind of new build in our major cities and for the country overall, with demand being driven by a number of factors including affordability, a greater acceptance of intensive housing and a surge in migrant first home buyers.
According to Stats NZ, the number of multi-unit homes consented - which include terraced homes, flats, units and apartments increased 48 percent, from 13,200 in the year ending May 2019, to 19,542 in the year ending May 2024.
Meanwhile, the number of standalone houses consented decreased from 21,509 to 15,309 over the same period.
Typically, terraced housing or townhouses are described as individual dwellings connected on two sides via a shared wall, and often are best suited to first home buyers, young families, downsizers or investors.
Generally speaking, they’re mostly found in more affordable areas with easy access to the CBD.
However, Bayleys national director of residential projects Suzie Wigglesworth says we’re also starting to see an increase in terraced housing developments in areas outside of our biggest cities.
Queenstown, coastal towns like Orewa and rural areas like Karaka are all experiencing a boost.
So what are the benefits of purchasing a terraced home, and what are some of the things to look out for if you’re in the market for one?
THE BENEFITS FOR RESIDENTS
Affordability is a big draw card for many people.
Generally, a terraced home is a more accessible way to secure a new build in a desirable location that would otherwise be out of that buyer’s budget if they were looking at traditional residential properties in the same area.
You can also get access to better lending criteria when you’re buying a new build.
Terraced homes are low maintenance, with lots of modern features including double glazing, heating, and smart storage solutions, and many of them come with some fantastic amenities.
There’s a big sense of community, as well as regular maintenance of the common areas.
THE BENEFITS FOR DEVELOPERS
It’s easy for many developers to see the benefit in building terraced housing. Not only is there consistent demand for the homes, but their construction is typically more straightforward than building an apartment.
The size of a townhouse development is really scalable, so they can be developed across a range of site sizes, and their design is constantly evolving to keep up with the needs of the area and its residents.
WHAT CAN I GET?
The price you’ll pay for a terraced home varies depending on the market and quality of the development, but in Auckland, the starting price for an entry-level two-bedroom townhouse is around $650,000 to $700,000.
The specs can also vary depending on the development and its target market.
At the entry-level end of the market, features such as a heat pump, and allocated off-street car park can be expected.
Kitchens normally include stone benchtops, under-bench ovens with glass cooktops, LED lighting and double-glazed joinery.
Bathrooms will usually have a tiled floor as a minimum with acrylic showers. You can also expect a compact outdoor courtyard with landscaping.
WHAT TO LOOK OUT FOR?
With new builds it pays to be cautious when buying off the plans, which can be the case for many people.
Concerns can arise from timelines, developers or even the final product not living up to expectations. Addressing these concerns is best done by doing your research.
This includes research on the developer and choosing your lawyer carefully.
Ideally engaging one who is experienced in assisting their clients in buying off the plan is the best course of action. Review as many different offerings as possible and choose one carefully that best suits your needs.
WHAT ARE SOME GREAT DEVELOPMENTS ON OFFER?
Suzie Wigglesworth says there are plenty of great terraced housing developments on offer if you’re hunting for the perfect place to settle down or invest in.
Firstly, in Auckland there’s Limeburners Bay.
“It’s a fantastic coastal community in Hobsonville, which has recently been launched to the market.
“A range of modern, sophisticatedly designed homes offer sweeping views of the neighbouring estuary with two, three and four-bedroom homes on offer from $840,000.”
Secondly, Five Mile Villas offers some great options further south in Queenstown.
“The properties have been incredibly popular, particularly among those looking for a low-maintenance holiday-bolthole, as well as first home buyers.
“Five Mile Villas has 226 two-bedroom, two-level freehold residential homes in Frankton, with private backyards priced from $859,000.”
FIND OUT MORE
Click here to explore the latest View New Build e-book showcasing 158 new build properties and development opportunities for sale from across New Zealand.
Contact us
